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Premium Bonds jackpot winner’s 7000% return on investment

A saver from Stoke-on-Trent might have secured the best investment of the coronavirus lockdown – bagging a 7,000 per cent return on their Premium Bonds in just five months.

The man bought £14,000 worth of Britain’s best-loved savings product in February 2020 and one of the Bonds scooped the £1million jackpot in this month’s draw.

He opted for the safe haven of Treasury-backed National Savings and Investments just as indices were beginning to flash red, ahead of one of the worst three-month periods in the history of international stock markets.

Piggy power: A Stoke-on-Trent saver who bought some Premium Bonds in February scooped one of the two £1m jackpots

Piggy power: A Stoke-on-Trent saver who bought some Premium Bonds in February scooped one of the two £1m jackpots

Piggy power: A Stoke-on-Trent saver who bought some Premium Bonds in February scooped one of the two £1m jackpots

While his £14,000 investment boomed by 7,042 per cent between February and June, and his total Bonds holding of £27,500 by 3,536 per cent, over the same period the FTSE All-Share has slumped by 16 per cent and the American S&P 500 6.3 per cent.

Despite the recent stock market recovery, investing £14,000 in a fund which tracked the FTSE All-Share at the start of February, rather than depositing it in Premium Bonds, would have left him with £11,668.

The man became the second Premium Bond millionaire from Stoke-on-Trent, while June’s other jackpot winner was from Nottingham. 

She held the maximum £50,000 worth of Bonds, seeing a buy-and-hold investment strategy pay off as a January 2017 purchase led to her being visited by Agent Million.

She was the eighth millionaire from the East Midlands city.

The FTSE All-Share Index may have recovered from one of the worst falls in the history of the stock market, but it is still down 16% on where it was at the start of February

The FTSE All-Share Index may have recovered from one of the worst falls in the history of the stock market, but it is still down 16% on where it was at the start of February

The FTSE All-Share Index may have recovered from one of the worst falls in the history of the stock market, but it is still down 16% on where it was at the start of February

In total, more than 3.6million prizes were handed out by NS&I this month, worth more than £104million. 

Some other holders of Britain’s best-loved savings product also saw a big return. 

One saver from Kent turned a £2,250 holding bought in March 2018 into £100,000 this month, a similarly stellar return of 4,344 per cent.

And someone from Northamptonshire bagged a similar return, turning a £1,000 holding bought a month later into £50,000.

Premium Bonds Winners

PrizeAreaValue of bond
£1,000,000Nottingham£25,000
£1,000,000Stoke-On-Trent£14,000
£100,000Hereford and Worcester£10,000
£100,000Kent£2,250
£100,000Berkshire£29,436
£100,000Essex£5,000
£100,000Bromley£10,000
£100,000Devon£45,000
More June 2020 winners

View list of June 2020 winners

To put these returns into context, every £1 Bond has a roughly 24,500 to 1 chance of winning a prize of £25 or more, with Bonds earning an average prize fund rate of 1.4 per cent annually.

That blows all other easy-access savings account rates out of the water if you’re feeling lucky, while NS&I’s Income Bonds paying 1.16 per cent and its Direct Saver paying 1 per cent are also among the best savings rates available at the moment.

Figures from NS&I reveal the number of eligible Bonds in the last two Premium Bond draws of June and May has sharply increased, as savers like the lucky winner from Stoke-on-Trent stashed money in the safe haven of NS&I.

Bonds become eligible for the draw after they have been held for a full month after they were purchased. 

How savers piled money into Premium Bonds in March and April 
MonthTotal Premium Bonds in the drawNew Bonds in the draw
June 201981,180,745,735
July 201981,646,957,120466,211,385
August 201981,979,282,936332,325,816
September 201982,518,577,254539,294,318
October 201983,121,568,735602,991,481
November 201983,678,794,092557,225,357
December 201984,379,826,041701,031,949
January 202085,042,266,956662,440,915
February 202085,346,436,256304,169,300
March 202086,147,886,134801,449,878
April 202086,430,926,941283,040,807
May 202087,664,243,4941,233,316,553
June 202089,218,660,2801,554,416,786
Source: NS&I 

There were 1.55billion more £1 Bonds in the June draw than in May, suggesting savers piled into the product in April as banks cut savings rates and NS&I reversed proposed cuts to its variable rate accounts which would have seen the rate on Premium Bonds cut to 1.3 per cent.

In total, there were 2.79billion more Bonds in the June draw than in April, as savers snapped up Bonds in March and April in response to falling markets and emergency cuts to the Bank of England base rate.

By comparison, an average of just over half-a-million Bonds were bought each month in the 10 months between May 2019 and February this year.  

If you’re a Premium Bonds holder, you can check to see if your number’s up with This is Money’s price checker, use the NS&I app, be notified by email, post or text or ask an Amazon Alexa smart speaker, if you have won.

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